GST cuts make essentials cheaper, but food bills rise due to new ‘Rain Fee’, show netizens

While the recent GST revisions have made everyday essentials more affordable, food delivery costs are creeping up. From September 22, local e-commerce delivery services come under Section 9(5) of the Central GST Act, bringing delivery charges under GST. On top of this, a new “Rain Fee” imposed by food delivery apps has grabbed attention, going viral on social media and sparking both debates and humorous memes.

A recent food bill shared online went viral after it showed Swiggy levying Rs 25 as a “Rain Fee” for an order placed during rainfall. With an additional 18% GST, the total extra charge came to Rs 29.50. For many customers, this was an unexpected addition. Previously, delivery charges were considered a “pass-through,” meaning payments were routed directly to delivery partners. Post-GST revision, these charges are now classified as a “taxable service,” subject to 18% GST, which adds another layer of cost for consumers.

The customer who shared the bill joked, “After historic GST reforms, even Lord Indra has been brought under the tax net. Now when it rains, you get Rs 25 Rain Fee + 18% GST = Rs 29.50.” The post quickly went viral on ‘X,’ sparking reactions ranging from humor to frustration.

Some users defended the fee, noting it incentivizes riders to brave heavy rain. One user wrote, “The so-called ‘rain fee’ isn’t some joke; it supports delivery personnel stepping out in bad weather. If complaints are needed, focus on hidden platform fees, not this one.” Others criticized the broader trend of rising costs, with delivery and packaging charges increasing on multiple apps post-GST.

Before September 22, delivery charges were often passed directly to delivery agents and were not explicitly taxable. Now, all local delivery services are subject to 18% GST. Whether apps absorb this cost or pass it to customers, food delivery bills are inevitably higher.

The timing coincides with wider GST reforms under the so-called ‘GST Bachat Utsav.’ Recent GST 2.0 changes have lowered rates on essentials such as dairy, packaged foods, and personal care products from 12% to 5%, offering households savings of 5–8%. Larger pack sizes and more affordable products are helping families stretch budgets while boosting FMCG sales during the festive season. According to Manoj Mishra, Partner and Tax Controversy Management Leader at Grant Thornton Bharat LLP, these changes are strengthening household savings and market momentum.

“Recent GST 2.0 reforms are already providing real relief to households, just as the festive season is driving consumer demand. Everyday essentials such as dairy products, packaged foods, and personal care products have moved into the 5% GST bracket, resulting in price reductions of 5–8%. Companies are leveraging this not only through lower prices but also through larger pack sizes to ensure consumers now get more value. Detergents, hygiene products, and staples like flour and tea are similarly cheaper, giving families tangible savings on their monthly shopping,” Mishra said.

However, for consumers ordering food during monsoons, these savings may be offset by the addition of Rain Fees plus GST. Whether humorously dubbed as “Lord Indra’s tax” or criticized for adding to expenses, the fee highlights how regulatory changes can ripple into everyday digital transactions.

Next time it pours outside and you consider ordering food, remember: the rain might bring relief, but it could also bring a small, taxable surcharge straight to your bill.